Technical and Further Education Institutes: 2014 Audit
Snapshot

Tabled: 28 May 2015

This report comments on the outcomes of
the 2014 financial audits of the 12 technical and further education
(TAFEs) institutes and their controlled entities. The report
makes comment on the financial results, trends and risks. It also
comments on performance reporting and risk management at the TAFEs,
being two key areas of governance within TAFEs.

The TAFEs whose financial reports are
complete and commented on in this report had a combined net deficit
of $75.4 million for 2014. This result follows a combined net
deficit of $15.1 million in 2013.

Our indicators of financial
sustainability risks show short-term challenges at six TAFEs, and
longer-term risks emerging for the whole sector as spending on
asset replacement and renewal is decreasing.

Victoria's TAFEs have undergone a period
of structural change since 2012 when the then government altered
its funding model. The agility of TAFEs to respond to these changes
and associated challenges has varied, and not all have responded in
a timely and/or financially sustainable way.

While some steps have been taken by the
sector to respond to the structural changes, bigger steps are
needed by TAFE boards and the Department of Education &
Training to turn around the financial decline within the
sector.

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